Forest Service awards $1.8M contract for nonscheduled air transport, highlighting potential value in specialized aviation services

Contract Overview

Contract Amount: $1,795,370 ($1.8M)

Contractor: Heloair, Incorporated

Awarding Agency: Department of Agriculture

Start Date: 2025-02-01

End Date: 2027-12-31

Contract Duration: 1,063 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: HSS MATOC TYPE 3 HUGER, SC N407HA

Place of Performance

Location: HUGER, CHARLESTON County, SOUTH CAROLINA, 29450

State: South Carolina Government Spending

Plain-Language Summary

Department of Agriculture obligated $1.8 million to HELOAIR, INCORPORATED for work described as: HSS MATOC TYPE 3 HUGER, SC N407HA Key points: 1. The contract's firm fixed-price structure suggests predictable costs for the Forest Service. 2. With 17 bids received, the competition level indicates a healthy market for these specialized air services. 3. The duration of the contract (over 3 years) suggests a sustained need for these transportation capabilities. 4. The award to HELOAIR, INCORPORATED, requires scrutiny of their past performance and pricing relative to market rates. 5. This contract falls within the broader category of transportation and logistics support for federal agencies. 6. The geographic focus on South Carolina may indicate specific operational needs or regional capacity.

Value Assessment

Rating: good

The contract value of approximately $1.8 million over three years for nonscheduled chartered passenger air transportation appears reasonable given the specialized nature of the service. Benchmarking against similar MATOC (Multiple Award Task Order Contract) awards for aviation services would provide a clearer picture of value for money. The firm fixed-price type suggests cost predictability, which is a positive indicator for efficient spending. However, without detailed cost breakdowns or comparisons to industry benchmarks for similar flight hours or passenger miles, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 17 bids received. This indicates a robust bidding process and suggests that the Forest Service was able to solicit a wide range of potential providers. The high number of bidders generally leads to more competitive pricing and a greater likelihood of selecting a contractor that offers the best value. The agency's ability to attract numerous offers is a positive sign for market engagement and price discovery in this specialized sector.

Taxpayer Impact: A competitive bidding process for this contract ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best price and service. The broad competition helps prevent inflated costs and encourages providers to offer services at market-competitive rates.

Public Impact

The primary beneficiaries are the Forest Service personnel and potentially other government entities requiring air transport for operational purposes, such as wildfire management, remote site access, or logistical support. The services delivered include nonscheduled chartered passenger air transportation, essential for reaching areas inaccessible by conventional means or for time-sensitive operations. The geographic impact is primarily focused on South Carolina, suggesting that the contract supports operations within or originating from this region. Workforce implications may include employment opportunities for pilots, aircraft maintenance personnel, and support staff within the aviation sector, particularly in South Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise that are not adequately covered by the firm fixed-price structure.
Dependence on a single contractor (HELOAIR, INCORPORATED) for a critical service could pose risks if performance issues or capacity limitations emerge.
Ensuring consistent service quality and safety standards across all flights throughout the contract duration will require diligent oversight.

Positive Signals

The firm fixed-price contract provides cost certainty for the Forest Service, minimizing the risk of budget overruns.
A high number of bidders (17) suggests a competitive market, likely leading to favorable pricing and service quality.
The contract's multi-year duration indicates a stable, long-term need, allowing for efficient planning and resource allocation.
The award to a specific contractor implies they met the technical and performance requirements outlined in the solicitation.

Sector Analysis

This contract falls within the broader aviation services sector, specifically focusing on nonscheduled chartered passenger air transportation. This niche market often serves government agencies and private entities requiring flexible, on-demand air travel for specialized purposes, such as accessing remote locations, emergency response, or executive transport. The market size for such services can be significant, driven by the unique logistical needs of various industries. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar air charter services, considering factors like aircraft type, flight hours, and operational complexity.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities if HELOAIR, INCORPORATED chooses to engage small businesses for specialized services or support. Without explicit subcontracting goals or reporting, the direct benefit to small businesses remains uncertain, though the overall contract value could indirectly stimulate economic activity.

Oversight & Accountability

Oversight for this contract will likely be managed by the Forest Service contracting officer and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, allowing for post-award analysis. The Inspector General's office for the Department of Agriculture may conduct audits or investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Aircraft Operations
Federal Aviation Administration (FAA) Regulations
General Services Administration (GSA) Schedules (for potential future comparisons)
Other agency aviation support contracts

Risk Flags

Potential for performance issues due to specialized nature of service
Risk of cost escalation if market conditions change significantly
Dependence on contractor's fleet availability and maintenance schedules

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.8 million to HELOAIR, INCORPORATED. HSS MATOC TYPE 3 HUGER, SC N407HA

Who is the contractor on this award?

The obligated recipient is HELOAIR, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $1.8 million.

What is the period of performance?

Start: 2025-02-01. End: 2027-12-31.

What is HELOAIR, INCORPORATED's track record with federal contracts, particularly for aviation services?

A thorough review of HELOAIR, INCORPORATED's federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes, timely delivery, and adherence to quality standards on previous government engagements. Specifically, looking for experience with similar nonscheduled chartered passenger air transportation services, especially for agencies like the Forest Service or Department of Agriculture, would provide the most relevant context. A lack of extensive federal contracting history might indicate a higher risk, while a strong record of successful past performance would be a positive indicator.

How does the awarded price compare to industry benchmarks for similar nonscheduled air charter services?

To benchmark the awarded price of approximately $1.8 million against industry standards, one would need to gather data on the average cost per flight hour, per passenger mile, or per mission for similar types of aircraft and operational profiles. This data can be obtained from industry aviation consulting firms, public databases of commercial air charter rates, or by analyzing other federal contracts for comparable services. Factors such as aircraft type, capacity, range, required amenities, and operational complexity (e.g., remote landings, specialized equipment) significantly influence pricing. Without this comparative data, it is difficult to definitively state whether the price represents excellent value for money.

What are the primary risks associated with this firm fixed-price contract for nonscheduled air transportation?

The primary risks associated with this firm fixed-price contract revolve around potential unforeseen operational challenges and the contractor's ability to absorb unexpected costs. While the fixed price offers budget certainty to the Forest Service, HELOAIR, INCORPORATED bears the risk of cost overruns due to factors like fuel price volatility, increased maintenance requirements, adverse weather conditions impacting flight schedules, or regulatory changes. If these risks materialize and are not adequately managed by the contractor, it could potentially lead to performance issues, delays, or, in extreme cases, contractor default, impacting the Forest Service's operational continuity.

How effective is the Forest Service's use of MATOCs for procuring specialized aviation services like this?

The use of Multiple Award Task Order Contracts (MATOCs) for procuring specialized aviation services like nonscheduled air transportation is generally considered an effective strategy for federal agencies. MATOCs allow agencies to pre-qualify multiple contractors, establishing a pool of vetted vendors capable of meeting specific requirements. This streamlines the process for awarding individual task orders, as much of the initial vetting and competition planning is done upfront. For specialized services where needs can fluctuate, MATOCs provide flexibility and ensure access to a range of capabilities, fostering competition among awardees for specific task orders and potentially leading to better pricing and service delivery over time.

What is the historical spending pattern for nonscheduled chartered passenger air transportation by the Forest Service?

Analyzing historical spending patterns for nonscheduled chartered passenger air transportation by the Forest Service would involve reviewing contract databases (like FPDS or USASpending) over several fiscal years. This would reveal the total annual expenditure on such services, the number and value of contracts awarded, the primary contractors utilized, and the geographic distribution of these services. Understanding these patterns can help identify trends, assess the consistency of demand, evaluate the effectiveness of competition over time, and determine if current spending levels are in line with historical averages or represent a significant increase or decrease, potentially indicating changes in operational needs or procurement strategies.

What are the implications of the 1063-day duration on the overall cost and service delivery?

The 1063-day duration (approximately 35 months) of this contract suggests a sustained and predictable need for nonscheduled chartered passenger air transportation by the Forest Service. From a cost perspective, a longer duration can allow the contractor to amortize fixed costs (like aircraft acquisition or leasing, and specialized equipment) over a larger period, potentially leading to more favorable per-unit pricing compared to short-term, ad-hoc arrangements. For service delivery, the extended period provides continuity and reliability, enabling the Forest Service to plan operations with greater certainty. However, it also means a longer-term commitment, necessitating robust oversight to ensure ongoing performance and value throughout the contract's life.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5721 GULFSTREAM RD, RICHMOND, VA, 23250

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,795,370

Exercised Options: $1,795,370

Current Obligation: $1,795,370

Actual Outlays: $355,773

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9319

IDV Type: IDC

Timeline